4. Planning, Industry and Environment Cluster
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4. PLANNING, INDUSTRY AND ENVIRONMENT CLUSTER 4.1 Introduction The Planning, Industry and Environment Cluster is Recurrent $5.9 Expenses responsible for the stewardship of the NSW Government’s billion 2020-21 natural and built assets. The Cluster’s key areas of focus include planning and enabling value-adding development and infrastructure that drives economic activity, protecting Capital $772.6 our native flora and fauna, ensuring our energy security Expenditure million 2020-21 through lower carbon emissions options, creating better public and open spaces, securing and improving the State’s water supply, increasing housing affordability and supply, and improving outcomes for Aboriginal people across the State. State Outcomes to be delivered by the Planning, Industry and Environment Cluster State Outcomes Example Programs(a) What the Cluster is delivering for people and underway to support delivery of Outcomes business 1. Connecting communities to resilient and sustainable energy and local environments • Conserving and preserving national parks • Accessing secure and sustainable energy Protecting and preserving the quality of our • Supporting a sustainable, climate-resilient environment via active stewardship to support a healthy New South Wales while securing an NSW affordable, reliable and sustainable energy future. • Encouraging a circular economy to better manage our resources 2020-21 investment: $2.0 billion recurrent expenses & $229.9 million capital expenditure 2. Create a strong and liveable NSW Planning for great places that create the conditions for • Coordinating and enabling the place and prosperity, economic development, innovation and infrastructure outcomes of regional plans jobs, delivering infrastructure and a diverse housing • Delivering better outcomes for place, mix that responds to the needs of communities, and design, public spaces and green securing environmental sustainability, good design, infrastructure greener places and safe and inclusive public spaces • Make strong, fair and quick assessments that bring communities together. driving balanced outcomes 2020-21 investment: $1.2 billion recurrent expenses & $28.8 million capital expenditure 3. Maximise community benefit from government land and property • Better use of land and property Delivering a coordinated, strategic approach to the use • Empowering Aboriginal communities for of government-owned property to maximise independent social and economic futures community benefits by delivering quality public spaces • Better place creation and diverse housing outcomes. • Optimise benefits of Crown land 2020-21 investment: $2.0 billion recurrent expenses & $499.2 million capital expenditure Outcome Statement 2020-21 4 - 1 Planning, Industry and Environment Cluster State Outcomes Example Programs(a) What the Cluster is delivering for people and underway to support delivery of Outcomes business 4. Sustainable, secure and healthy water resources and services Providing confidence to communities and stakeholders • Improved water sustainability, access and through the transparent stewardship of water health resources, provision of services and reforms that support sustainable and healthy environments, • Improved water regulation economies and societies across New South Wales. 2020-21 investment: $698.4 million recurrent expenses & $14.7 million capital expenditure (a) Note that Programs are being further refined as the outcome and performance framework continues to mature. 4 - 2 Outcomes Statement 2020-21 Planning, Industry and Environment Cluster 4.2 Overview of Cluster expenses by State Outcome A summary of expenses by State Outcome is provided in the chart and table below. Chart 4.1: Recurrent expenses by Outcome 2020-21 (dollars and %) Chart 4.2: Capital expenditure by Outcome 2020-21 (dollars and %) Note: The sum of percentages does not equal one hundred due to rounding. (a) Grouped for presentation purposes, “Other State Outcomes” comprises: • Create a strong and liveable NSW • Sustainable, secure and healthy water resources and services. Outcomes Statement 2020-21 4 - 3 Planning, Industry and Environment Cluster 4.3 Outcome 1: Connecting communities to resilient and sustainable energy and local environments State Outcome overview and 2020-21 investment Protecting and preserving the quality of our environment Recurrent through active stewardship to support a healthy New South $2.0 Expenses billion Wales and securing an affordable, reliable and sustainable 2020-21 energy future. The State Outcome comprises activity across energy, Capital $229.9 Expenditure climate change and sustainability; nature including habitat million 2020-21 conservation, threatened species and aquatic habitats; nature-based experiences in national parks and zoos; and human and environmental health through regulation. Delivery is shared by the Department of Planning, Industry and Environment, the NSW Environment Protection Authority, Natural Resources Commission, Biodiversity Conservation Trust, Zoological Parks Board, and Environmental Trust. 2020-21 State Outcome Budget highlights In 2020-21, the Planning, Industry and Environment Cluster will invest $2.3 billion ($2.0 billion recurrent expenses and $229.9 million capital expenditure) in this Outcome, including: $1.1 billion ($3.4 billion expenses and $508.6 million capital over four years) to support our national parks and natural habitats across the State, including: – undertaking targeted post-fire bushfire recovery actions and additional bushfire management capacity for National Parks – continued investment in land management and biodiversity conservation that protects New South Wales’ unique native plants and animals including koalas, across public land and private land – upgraded national parks infrastructure and acquisition of new land to meet growing domestic tourism demand and deliver quality experiences for visitors – further investment in our zoos including an additional $37.5 million over two years towards expanded wildlife hospital facilities at Taronga Zoo Sydney and Taronga Western Plains Zoo Dubbo – investment in long-term sustainable management of coasts, estuaries and floodplains through environmental water programs $649.2 million ($2.1 billion expenses and $43.2 million capital over four years) to ensure the long-term reliability, affordability and sustainability of the electricity system, to reduce emissions and climate impacts across the New South Wales economy and to help low income households to manage cost of living pressures through energy rebate and emergency relief programs. This includes $49.7 million over two years in recoverable grants for pumped hydro projects to improve competition under the Electricity Infrastructure Investment Safeguard as part of the NSW Government’s Electricity Infrastructure Roadmap 4 - 4 Outcomes Statement 2020-21 Planning, Industry and Environment Cluster $96.0 million ($234.8 million expenses and $5.0 million capital over four years) for improved waste management and promoting a circular economy including: – driving strategic policies, programs and initiatives, such as a 20-year Waste Strategy and Plastics Plan – the Waste Less Recycle More program to transform waste management in New South Wales, increase education and improve waste management practices across the community – addressing lead contamination in Broken Hill $11.0 million ($67.7 million over four years) in grants to councils to undertake coastal and estuary planning projects and implement works identified in certified coastal zone management plans and coastal management programs. Key performance insights This section provides analysis and insights on key Outcome Indicators for this State Outcome. Energy as a proportion of the average household cost of living This indicator demonstrates the household energy bill savings driven by NSW Government energy affordability programs. It measures the direct impact of NSW Government actions to reduce energy costs for consumers. Electricity bills as a proportion of disposable income increased in recent years due to the rise in wholesale electricity prices following the closure of power stations in other states. Performance against this indicator has improved, as the increase in household electricity costs began to subside in 2018-19 with the new generation coming online. These lower costs are expected to continue in 2020-21 and beyond under the NSW Government’s Electricity Infrastructure Roadmap and the indicator is on track to achieve its performance target. Under the Roadmap to modernise the electricity system and unlock internationally competitive energy prices, households are expected to save an average of $130 annually on electricity bills between 2023 to 2040. Chart 4.3: Energy as a proportion of the average household cost of living 3.6 3.5 3.4 3.3 3.2 3.1 Per cent 3 2.9 2.8 2.7 2016-17 2017-18 2018-19 2019-20 2020-21 Actual Actual Actual Forecast Target Note: 2019-20 actual data is not yet available, and an estimate for 2019-20 has been provided. Outcomes Statement 2020-21 4 - 5 Planning, Industry and Environment Cluster Millions of tonnes of CO2 equivalent emissions (MtCO2-e) emitted annually in New South Wales (DPIE) The NSW Government’s commitment to achieve net zero emissions by 2050 is set out in the NSW Climate Change Policy Framework released in 2016. This indicator measures greenhouse gas emissions from all sectors of the NSW economy and all other emitting activities occurring in New South Wales. Performance against this indicator has remained stable